GlaxoSmithKline 2nd-qtr sales up 2% but EPS falls 14%

UK pharma giant GlaxoSmithKline posted second-quarter 2013 financial results showing that turnover increased 2% (in constant currencies and sterling (£) to reach £6.62 billion ($10.09 billion), but with operating profit falling 16% (£) and 13% CER) to £1.44billion and earnings per share falling 14% (£) and 11% (CER) to 21.5 pence.

Pharma sales grew 2% (CER) to £4.52 billion. Vaccines sales were flat at $7786 million and Consumer Healthcare unit sales grew 2% to £1.31 billion. Turnover of HIV/AID joint venture ViiV Healthcare fell 4% to £339 million. The company said it continues to expect core EPS growth in full-year 2013 of 3%-4%, with turnover growth of around 1% (both CER).

“This quarter has seen significant further progress in delivering against this strategy. We saw particularly encouraging progress in delivery of our late stage pipeline with approvals received in the United States for Breo Ellipta [fluticasone and vilanterol inhalation powder] for COPD and two new treatments for metastatic melanoma, Tafinlar [dabrafenib] and Mekinist [trametinib]. We now have received approvals for three of the six key assets we recently filed with regulators. With Phase III data expected on 13 assets during 2013/2014, I remain confident of R&D’s productivity and our ability to deliver valuable new product flow on a sustainable basis,” commented chief executive Sir Andrew Witty.